Maverick Oil and Gas Issues Operations and Organizational Update
September 07, 2006 11:32:01 (ET)
DALLAS, Sep 07, 2006 (BUSINESS WIRE) -- Maverick Oil and Gas, Inc. (MVOG, Trade) today announced the following update to its operations and organization:
Operations
In the Fayetteville Shale play of western Arkansas, we have established a significant acreage position of approximately 125,000 gross acres and drilled four wells. Maverick serves as operator of this program and has a 45% working interest. The first two wells, as announced in our July 28, 2006 operations release, tested the shale section but have not yet established commercial production. Further testing is planned and both wells have been suspended pending further evaluation. The third well, the Morris #1-3 was plugged and abandoned due to the Fayetteville shale interval being in close proximity to a porous wet sand. The fourth well, the Lovett #1-7 reached a total depth of 5,365 feet and pipe was set. The well encountered one Fayetteville shale interval and two shallow conventional sand intervals. The Fayetteville shale encountered exhibited improved porosity over our previous wells. These zones will be tested in the vertical well bore when a completion unit can be scheduled for the operation.
In the Barnett Shale play of Wise, County, Texas we now have 3 wells producing, 1 well flowing back after fracture stimulation, one well awaiting fracture stimulation and one well about to spud. The Maverick operated Flowers #1-H was recently completed and is flowing at a pipeline restricted rate of approximately 1 mmcfg/day and is still recovering load water. We have numerous additional possible locations on this property that could be drilled. The acreage does have a continuous drilling provision, which requires an additional well be commenced by January 15, 2007.
As we have previously disclosed, our outstanding debentures require that we use our best efforts to sell the Barnett Shale properties by December 31, 2006. It is the Company's intent to prepare a data room for sale of these properties as soon as practical, once the reserve report is completed. However, in order to preserve the value of our Barnett Shale project, we will need to continue our existing drilling program and fund an additional well. Since our current resources are not sufficient to do so, we will need to raise additional capital. This will require the consent of the holders of our debentures, as the terms and effect of our debentures impose substantial limitations upon our ability to raise additional capital.
Organization
Operations are being consolidated into the Dallas office. The workforce has been reduced by seven permanent and contract personnel. Mr. James Parrish, Executive Vice President of the company has left our employ to pursue other interests. Investor relations will be coordinated by Mr. Steve Craig from the Dallas office.
James A. Watt, newly appointed Chairman and Chief Executive Officer of Maverick, commented, "Our Fayetteville shale project of eastern Arkansas is a high potential exploration play that we and others in the industry are attempting to define. The planned testing on the Lovett, along with other industry activity in the area, will help determine the ultimate reserve potential and how best to exploit it. Drilling results to date on our Barnett acreage are very encouraging and we feel the planned sale of the property will allow us to mitigate or satisfy the terms of our outstanding debentures. Critical to our near term success will be ongoing negotiations with the holders of our existing debentures that will allow us to raise additional capital to fund the remainder of the drilling in the Barnett Shale and testing of the Fayetteville project. Assuming we can successfully raise near term capital and monetize our Barnett properties, we will move forward to acquire properties with sufficient cash flow to support the longer term development of exploration ventures."
About Maverick Oil and Gas
We are an early stage independent energy company engaged in oil and gas exploration, exploitation, development and production. We currently participate in these activities through the interests we hold in oil and gas exploration and development projects in Arkansas, Texas and Colorado. We will seek to acquire other exploration and production properties and from time to time sell or trade interests in properties in an effort to maximize value for our shareholders. For more information about the Company, please visit our website at http://www.maverickoilandgas.com
This press release contains forward looking statements within the meaning of section 27A of the securities act of 1933, as amended, and section 21E of the securities exchange act of 1934, as amended, regarding future results, levels of activity, events, trends or plans. We have based these forward-looking statements on our current expectations and projections about such future results, levels of activity, events, trends or plans. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, events, trends or plans to be materially different from any future results, levels of activity, events, trends or plans expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as guidance, may, will, should, could, would, expect, plan, anticipate, believe, estimate, continue or the negative of such terms or other such expressions. In connection with our announced drilling programs, important factors that could cause actual results to differ materially from our expectations, include but are not limited to: (1) our ability to secure an amount of proceeds sufficient to finance our anticipated drilling and development costs, given our currently limited capital resources; (2)our ability to sustain operations for a period of time necessary to implement certain of our development plans, given our currently limited resources: (3) whether drilling efforts can be completed within the time and cost budgets estimated by the company in view of the risks and uncertainties normally associated with drilling projects;(4) whether ultimate production may be achieved, and if so, in a manner consistent with either initial test results or our expectations, given the uncertainties associated with drilling and extraction of oil and gas reserves; (5) whether long term test results will justify the drilling of additional wells; (6) when such additional wells may be drilled; and (7) the ability to drill for and extract commercial quantities of oil and gas. As they pertain to our business, in general, important factors that could cause our actual results to differ materially from our expectations, include but are not limited to those factors disclosed in our annual report on Form 10-KSB, our other filings with the Securities and Exchange Commission, as well as our other public documents and press releases which can be found on our web site (http://www.maverickoilandgas.com). Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward looking statements to reflect events or circumstances occurring after the date hereof.
SOURCE: Maverick Oil and Gas, Inc.
Maverick Oil and Gas, Inc., Dallas
Steve Craig, 214 239-4333
steve.craig@maverickoilandgas.com
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There were 118,142,860 issued and outstanding shares of the registrant’s common stock as of April 21, 2008.
Maverick Oil and Gas, Inc. is engaged in oil and gas exploration, development and production. Initially formed to explore, acquire leases and drill for natural gas in two regions of Texas, the company's strategy is to expand its operations further by building on the characteristics of its initial two projects; focused, data-supported lease acquisition, and working with premier grade partners.
